Airfare Levels to Remain Stable in 2019, Says Amex

By BTE

2019-01-11T05:00:00+00:00

Airfare levels should remain stable in 2019, according to Air Monitor 2019, published by American Express Global Business Travel (GBT). Capacity and growing competition, including new low-cost carriers on long-haul routes, will likely restrain fare rises on key routes from Europe and Asia-Pacific, even as the global economy is forecast to grow and airlines face rising operating costs. However, current economic and political uncertainties and developments may impact the forecast. There are some exceptions to the projection of stable air fares. Demand growth in premium classes across North America is forecast to outstrip capacity growth, meaning buyers could see significant price rises on these fares within the region and to Europe. In contrast, fares to Middle East destinations are forecast to fall from all regions, in both business and economy classes. Overcapacity on Middle Eastern routes is the chief factor in the expected price fall